Can I use home loan top up for car?

Can I use home loan top up to buy a car?

While top-up home loans can just be availed by the existing home loan borrowers, they do not come with any restriction on end usage of funds except for speculative purposes. … The proceeds of a top-up home loan can also be used for buying a car, financing child’s higher education, etc.

Can you add a car loan to a mortgage?

You can roll your current car loan into a new mortgage if you’re experiencing some signs you need a new car. Before doing this, however, it’s essential that you understand the effect compounding interest will have on your loan amount.

Can I top up my car loan?

You can get a top-up loan on your existing car loan for up to 150% of its value if you maintain a clear payment record for at least 9 months. This requirement may vary from lender to lender.

How does home loan top up work?

A Top up loan meaning an extra loan is a financing option that is offered over and above the existing loan amount for products such as home loan and personal loan. The top-up loan is offered to customers who have an existing relationship with the lender, have a good credit score and have repayment ability.

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Is it bad to have a car loan when buying a house?

Buying a Car Can Affect Your Credit

And a favorable credit rating does help you qualify for a mortgage. However, it takes a while to build up that payment history, so an auto loan isn’t going to immediately boost your credit.

Can I transfer car loan to another person?

Can you transfer a car loan to someone else? You cannot “transfer” a car loan to someone else without also transferring ownership of the vehicle to them. In most cases, transferring ownership is considered selling.

Can I transfer my car loan from one bank to another?

You have the option of transferring your loan to a new lender of your choice. “This process of transferring your existing loan to another lender is called a car loan balance transfer. Each lender has different terms and conditions for such transfers.

How do you take over a car loan?

“When the registration and title are transferred to a new owner, the lender needs to be notified. The lender will then step in and require a credit check to make sure the new owner can make the payments. This leads to the initiation of a new loan at the new owner’s credit level.”

Can we use home loan top-up for personal use?

However, according to the State Bank of India’s and Bajaj Finance’s websites, borrowers can avail top-up loans for any personal use.

Can I use top-up home loan for personal use?

The top-up loan can be taken for any purpose. … Though the maximum top-up amount limit varies from bank to bank, the total balance home loan generally does not exceed 70-80 per cent of the total value of the property. 5. As compared to personal loans and car loans, top-up loans are available at lower interest rates.

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Is Top-up loan a good option?

“Due to the relatively lower interest rate structure and flexible loan tenure, top-up loans are a better alternative to a personal loan. A top-up loan can be taken for a maximum tenure of upto 30 years or the remaining period of your existing home loan, while a personal loan is offered for a maximum of five years.